CUSTOM&EXCISE&SERVICE TAX
CESTAT Chennai Holds Software Part Of Hardware Value, Reduces Duty Demand On Wipro
The Chennai Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that the value of software supplied along with imported networking equipment by Wipro (Infotech Group) is includible in the assessable value of the hardware for the purpose of levying customs duty.The Bench, comprising Judicial Member P. Dinesha and Technical Member Vasa Seshagiri Rao, partly allowed the appeal by restricting the demand to the normal period of limitation, while setting aside the...
DEEC Licence Must Be Valid On Date Of Warehouse Clearance To Claim Customs Exemption: Supreme Court
The Supreme Court of India has recently reiterated that in the case of warehoused goods, customs duty liability arises on the date of actual clearance from the warehouse, and an importer cannot claim exemption under a DEEC advance licence if the licence has expired by then.Upholding the High Court's decision, a bench of Justices Manmohan and Vipul M. Pancholi ruled that entitlement to exemption must subsist on the date duty is assessed. “From the aforesaid provisions, it is evident that the...
Supreme Court Upholds Delhi High Court Ruling On Duty Drawback For Unlocked Mobile Phones
The Supreme Court has recently dismissed a Special Leave Petition filed by Customs, thereby letting stand a Delhi High Court ruling that unlocking or activating mobile phones prior to export does not disentitle exporters from claiming duty drawback. By an order dated January 30, 2026, a Bench of Justices J.B. Pardiwala and Joymalya Bagchi declined to interfere with the Delhi High Court's judgment, observing that it found “no good ground to interfere with the impugned order passed by the High...
CESTAT Allows Nil Basic Customs Duty On Sterling Silver Jewellery Imported From Thailand
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) recently allowed a jeweller to claim nil basic customs duty on sterling silver jewellery imported from Thailand, ruling that customs authorities were wrong to deny the benefit just because the importer did not provide some information. Nil basic customs duty refers to zero customs duty payable on certain imports under applicable trade agreements. A Bench comprising Judicial Member Dr. Rachna Gupta was...
Bulk Imported Nutraceutical Ingredients Cannot Be Classified As "Edible Preparations": CESTAT Delhi
The Delhi Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that nutraceutical ingredients imported in bulk cannot be classified as “edible preparations” and therefore do not attract a higher customs duty. The Bench, comprising President Justice Dilip Gupta and Technical Member Hemambika R. Priya, set aside a customs duty demand of Rs. 7 crore raised against Sundyota Numandis Probioceutical Private Limited on allegations of misclassification of imported...
Supreme Court Issues Notice On Challenge To Delhi HC View That Customs Need Not Communicate Adjudication Time Extension
The Supreme Court recently (February 6) issued notice in a challenge to a Delhi High Court ruling that held that customs authorities were not required to communicate an extension granted for completing adjudication proceedings and directed that the matter be heard along with a pending appeal. A bench comprising Justices P.S. Narasimha and Alok Aradhe issued notice in the special leave petition filed by Pranij Heights India Pvt. Ltd. and directed that it be listed along with the pending SLP in...
Are Skin & Hair Care Treatments Taxable As Cosmetic Surgery? CESTAT Delhi Seeks Fresh Examination
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT), on 30 January, asked the lower authorities to re-examine whether skin and hair care treatments provided by a clinical establishment qualify as “Cosmetic and Plastic Surgery Services” and are therefore liable to service tax. A Bench comprising Judicial Member Binu Tamta and Technical Member Rajeev Tandon was examining an appeal filed by Trichoderm, a Delhi-based clinical establishment operating under the brand...
Police Security Services Exempt From Service Tax Prior To June 2012: Madras High Court
The Madras High Court has allowed a plea seeking service tax exemption for police guard charges and escort duties, holding that such activities carried out by the State Police do not fall within the service tax net prior to 1 June 2012.A Division Bench of Justice Anita Sumanth and Justice Mummineni Sudheer, in a judgment delivered on 12 December 2025, examined service tax liability by referring to the definition of 'person' under the General Clauses Act.They noted that the Service Tax law...
Service Tax Demand Based Solely On IT Returns Is Presumptive: CESTAT Mumbai
The Mumbai Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that a service tax demand based solely on differences between income tax and service tax returns is presumptive. A Bench comprising Judicial Member S.K. Mohanty and Technical Member M.M. Parthiban, on 7 January 2026, set aside a Rs. 7.05 crore service tax demand raised on MM Construction, a civil contractor engaged in road construction and drainage improvement works for municipal and government...
HAL Fire Extinguishers In Su30MKI Jets Are Integral Aircraft Parts Exempt From Duty: CESTAT Delhi
The Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that fire extinguishers installed by Hindustan Aeronautics Limited (HAL) in Su30MKI fighter jets qualify as integral aircraft parts and cannot be treated as stand-alone safety equipment to deny customs duty exemption. A Bench comprising Judicial Member Binu Tamta and Technical Member Hemambika R. Priya, on 9 January 2026, set aside the differential customs duty demand of Rs. 92 lakh against HAL . ...
Customs Cannot Arrogate Powers Under FEMA To Confiscate Currency Or Travel Cards: CESTAT Delhi
The New Delhi Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has held that customs officers cannot arrogate powers under the Foreign Exchange Management Act (FEMA), 1999, to confiscate currency or travel cards under the Customs Act, 1962. A Bench comprising Judicial Member Ajay Sharma and Technical Member C J Mathew observed that while customs officers have the authority to intercept and seize currency at airports, they cannot adjudicate matters under the Customs Act...